The year 2010 was similar to 2009 in that the domestic box office hit a record high, once again, while the domestic video retail market was continuing its steady decline as consumers alter their home video viewing habits.Consumers are now opting to sign up for streaming and/or rental services, such as Netflix Inc. They are using video-on-demand services more and more, as they discover these services can be cost-effective.Unfortunately for studios, the revenue from VOD has not yet offset the resulting drop in DVD sale revenue, which was their top earner for more than a decade now.We tracked 415 titles in our database that were released on DVD in 2010, and among those titles, wholesale revenue dropped by 43.9% from $7.97 billion in 2009 to $4.47 billion in 2010. It is important to note that this does not include Blu-ray revenue, which grew significantly in 2010. It should also be noted that this sample of the video market does not include library titles, direct-to-video titles and TV on DVD, as well. When looking at the video retail market as a whole, consumer spending only declined 10.8% to $11.86 billion in 2010.The average wholesale price was relatively flat when compared with 2009, but there were significantly fewer units shipped, down 43.8% to nearly 226.0 million.On average, films shipped 545,000 units and made $10.8 million in wholesale revenue, off 52.4% from the $22.6 million average in 2009. In the past five years, average wholesale revenue posted a negative 13.7% CAGR.

via SNL: Article.